Individual non-resident Indian
Nature of Income
Interest on notified Bonds
Conditions laid down for Tax Exemption
Person receiving such bonds as nominee, or survivor or gift from such NRI is also entitled to benefit under this clause.
The NRI should invest in the bond in Foreign exchange and on maturity the amount shall not be entitled to be repatriated
Benefit would not be withdrawn if the NRI becomes resident of India.
Where the bond is encashed before maturity exemption would not be allowed for said previous year Govt. shall not notify any such bonds after 1-6-2002.